Lawstreet Journal

NCLT Initiates Insolvency Proceedings Against Aviva Life Insurance [Read Order]

Lawstreet Journal 12 Nov 2019 11:41pm

Image courtesy: Lawstreet Journal Business NCLT Initiates Insolvency Proceedings Against Aviva Life Insurance [Read Order]

The National Company Law Tribunal (NCLT), New Delhi Bench-V, on November 4, 2019, in the matter of Apeejay Trust v. Aviva Life Insurance Co. India Ltd., has initiated a corporate insolvency resolution process against Aviva Life Insurance under theInsolvency and Bankruptcy Code, 2016(IBC).

The order was passed by a two-member Bench of Member (Judicial) Justice (Retd.) RajeshDayal Khare and Member (Technical) Sumita Purkayastha while hearing a petition filed invoking the provision of Section 9 of the Insolvency & Bankruptcy Code, 2016.

Background 

The petitioner and respondent entered into an agreement of Leave and License on June 25, 2008, for office premises and other services at Apeejay Express. Pursuant to the agreement, the petitioner had provided office premises and other services to the respondent. However, the respondent despite several requests has defaulted in making payments towards service tax and license fees to the tune of Rs. 27,67,203/-.

The petitioner, therefore, filed a petition as an Operational Creditor praying for initiation of Corporate Insolvency Resolution Process of the Corporate Debtor for its inability to liquidate their claim of Rs. 27,67,203/-.

The Operational Creditor issued the demand notice dated April 5, 2019, as required under Section 8 of the Code. The Corporate Debtor, vide reply dated April 5, 2019, denied any liability and stated that no dues are payable to the Operational Creditor.

Submissions 

Learned counsel, appearing for the Corporate Debtor, challenged the maintainability of the petition on the ground that they are an insurance company and therefore, they are "Financial Services Provider", the business of which is strictly regulated by the "Financial Sector… Continue Reading...


Tagged: National Company Law Tribunal  
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